New information in continuous disclosure

2015 ◽  
Vol 27 (2) ◽  
pp. 229-263 ◽  
Author(s):  
Mark Russell
Keyword(s):  
Information Content ◽  
Stock Price ◽  
Price Sensitivity ◽  
Firm Characteristics ◽  
Disclosure Regulation ◽  
Stock Price Synchronicity ◽  
Content Type ◽  
New Information ◽  
Study Support ◽  
Practical Implications

Purpose – This paper aims to examine the price-sensitivity of information under capital market disclosure regulation, the Australian continuous disclosure regulation (CDR). Design/methodology/approach – The study tests the information content of continuous disclosures and identifies the firm characteristics that condition the price-sensitivity of information under CDR. Findings – The study provides evidence that continuous firm disclosures are significantly associated with stock price adjustment to information. Further results are consistent with firm disclosure and its information content being determined by the economics of the firm. Practical implications – The findings of the study support the introduction of ongoing and continuous disclosure regimes in a number of capital markets, and assist firms and regulators model the price-sensitivity of information under CDR. Originality/value – The study highlights the sources of an informed market, and contributes to our understanding of the conditions under which the CDR reveals unexpected information. The results provide evidence of an association between firm disclosure and stock price synchronicity, consistent with managerial incentives to disclose information.

Comparing the informativeness of sustainability disclosures versus ESG disclosure ratings

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Li Li Eng ◽  
Mahelet Fikru ◽  
Thanyaluk Vichitsarawong
Keyword(s):  
Information Content ◽  
Firm Value ◽  
Stock Price ◽  
Market Value ◽  
Content Type ◽  
Company Valuation ◽  
Incremental Information ◽  
The Impact ◽  
Different Sources ◽  
Practical Implications

Purpose The purpose of this paper is to examine the impact of sustainability disclosures and disclosure ratings on firm value. This paper compares the informativeness of sustainability disclosures in company reports versus environmental, social and governance (ESG) disclosure ratings. The authors examine the extent to which they provide incremental information. Design/methodology/approach The sample consists of panel data from over 2,600 publicly-listed non-financial US companies for the period 2014–2018. The authors obtain sustainability disclosures from Sustainability Accounting Standards Board (SASB) Navigator and ESG disclosure scores from Bloomberg. The authors regress market value and/or stock price on sustainability disclosures and ESG scores to evaluate information content. Findings ESG scores are positively associated with market value and price. Sustainability disclosures in the form of metrics and company-tailored narratives provide incremental information content on market value and/or price. Boilerplate disclosures reduce market value and price. Sustainability disclosures and ESG scores provide incremental information, suggesting that it would be beneficial to harmonize standards for reporting sustainability disclosures. Research limitations/implications The limitation is that the authors have only considered sustainability disclosures for a sample of US companies from two sources – SASB Navigator and Bloomberg. Practical implications The paper provides some evidence that may be pertinent to the debate on whether to harmonize the guidance on reporting sustainability issues. Social implications The paper provides evidence on the benefits to firms for reporting sustainability issues. Originality/value This paper is among the first to analyze company sustainability disclosures obtained from two different sources – SASB Navigator and ESG disclosure ratings – and compare them for relevance for company valuation. With SASB Navigator, the authors obtain further refinement into the nature of the information provided in the sustainability disclosures, that is, boilerplate, company-tailored or metrics disclosures.

Aggressive tax planning and stock price synchronicity: evidence from China

2019 ◽  
Vol 15 (5) ◽  
pp. 829-857 ◽  
Author(s):  
Hua Feng ◽  
Ahsan Habib ◽  
Gao liang Tian
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Tax Planning ◽  
Specific Information ◽  
Price Informativeness ◽  
Firm Level ◽  
Stock Price Synchronicity ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the association between aggressive tax planning and stock price synchronicity. Design/methodology/approach Employing the special institutional background of China, this study constructs tax aggressiveness and stock price synchronicity measures for a large sample of Chinese stocks spanning the period 2003–2015. The authors employ OLS regression as the baseline methodology, and a fixed effect model, the Fama–Macbeth method and GMM as sensitivity checks. Matched samples and difference-in-difference analyses are used to control for endogeneity. Findings The authors find a significant and positive association between aggressive tax planning and stock price synchronicity. Because material information about risky tax transactions tends to be hidden in various tax accruals accounts, aggressive tax strategies make financial statements less transparent, thereby, increasing information asymmetry and decreasing stock price informativeness. The authors also find that the firms engaging in aggressive tax planning exhibit relatively high corporate opacity. In addition, the authors find that improvements in the tax enforcement regime, ownership status and high-quality auditors all constrain the adverse effects of tax aggressiveness. Practical implications This study has important practical implications for China’s regulators, who are striving to reduce the tax burden of enterprises. It also helps investors to consider investment decisions more appropriately from a taxation perspective. Originality/value First, this paper contributes to the stock price efficiency literature by identifying the effect of a hitherto unexamined factor, namely, firm-level aggressive tax planning, on the efficiency of stock prices. Second, this study provides further empirical evidence to support the agency view of tax aggressiveness, and the informational interpretation of stock price synchronicity. Third, this study helps us better understand the effects of firm-level tax policy on firm-specific information capitalization in an environment where overall country-level investor protection is relatively weak.

Gender differences in preferences for firm characteristics across different groups of investors

2016 ◽  
Vol 8 (1) ◽  
pp. 2-15 ◽  
Author(s):  
Mohammad Tariqul Islam Khan ◽  
Siow-Hooi Tan ◽  
Lee-Lee Chong
Keyword(s):  
Gender Differences ◽  
Gender Gap ◽  
Institutional Investors ◽  
Stock Price ◽  
Trading Volume ◽  
Firm Characteristics ◽  
Content Type ◽  
Know How ◽  
Dividend Payments ◽  
Practical Implications

Purpose – This paper aims to study gender differences in preferences for firm characteristics across various groups of investors in Malaysia. Design/methodology/approach – Self-declared preferences are elicited through a survey of 520 investors comprising retail, financial professionals and institutional investors in the Malaysian stock market. Non-parametric (Mann-Whitney and Kruskal-Wallis) tests are computed to achieve the stated objective. Findings – Results reveal that female investors display higher preferences for the liquidity of a firm, dividend payments, trading volume of a firm, stock price and firm’s age than male investors across investor’s groups. Research limitations/implications – Findings imply that the gender gap in investing behaviour can be partly attributed to gender differences in preferences for firm characteristics. Practical/implications – The findings suggest that the gender gap can be mitigated by giving more priority to the choices of female investors with respect to firm characteristics. In turn, this may reduce a part of the gender gap in investing. Moreover, the findings would assist companies to understand and know how their shareholder’s preferences vary with respect to gender and investor’s groups. Originality/value – This paper provides evidence concerning the gender gap in investor’s self-declared preferences for firm characteristics across retail, financial professionals and institutional investors in Malaysia, which complements previous studies that used equity holdings data and only two groups of investors.

Does the second wave of COVID-19 undermine corporate immunity? International evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huy Viet Hoang ◽  
Cuong Nguyen ◽  
Khanh Hoang
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Fixed Effects ◽  
Management Strategies ◽  
The United States ◽  
Least Square ◽  
Content Type ◽  
The Impact ◽  
Second Wave ◽  
Practical Implications

PurposeThis study compares the impact of the COVID-19 pandemic on stock returns in the first two waves of infection across selected markets, given built-in corporate immunity before the global outbreak.Design/methodology/approachThe data are collected from listed firms in five markets that have experienced the second wave of COVID-19 contagion, namely the United States (US), Australia, China, Hong Kong and South Korea. The period of investigation in this study ranges from January 24 to August 28, 2020 to cover the first two COVID-19 waves in selected markets. The study estimates the research model by employing the ordinary least square method with fixed effects to control for the heterogeneity that may confound the empirical outcomes.FindingsThe analysis reveals that firms with larger size and more cash reserves before the COVID-19 outbreak have better stock performance under the first wave; however, these advantages impede stock resilience during the second wave. Corporate governance practices significantly influence stock returns only in the first wave as their effects fade when the second wave emerges. The results also suggest that in economies with greater power distance, although stock price depreciation was milder in the first wave, it is more intense when new cases again surge after the first wave was contained.Practical implicationsThis paper provides practical implications for corporate managers, policymakers and governments concerning crisis management strategies for COVID-19 and future pandemics.Originality/valueThis study is the first to evaluate built-in corporate immunity before the COVID-19 shock under successive contagious waves. Besides, this study accentuates the importance of cultural understanding in weathering the ongoing pandemic across different markets.

Corporate payout-form: investors’ preference and catering theory

2018 ◽  
Vol 44 (12) ◽  
pp. 1418-1433
Author(s):  
Abdelaziz Chazi ◽  
Alexandra Theodossiou ◽  
Zaher Zantout
Keyword(s):  
Design Methodology ◽  
Policy Formulation ◽  
Future Research ◽  
Stock Repurchases ◽  
Firm Characteristics ◽  
Content Type ◽  
Robust Measures ◽  
Practical Implications ◽  
Form Preference ◽  
Number Of Firms

Purpose The purpose of this paper is to develop and validate new robust measures of investors’ preference for the form of regular corporate payout. Then, the paper adds to the empirical evidence on catering theory by examining managers’ catering to such preference. Design/methodology/approach The authors use the matching method to control for firm characteristics. The authors apply two robustness tests to validate the measures. The authors use the rigorous multivariate analysis. Findings US investors’ preference for regular dividends vs regular stock repurchases, being different forms of corporate payout, varies over time. Managers cater to investors’ preference for payout form. The findings are consistent with the catering theory of Baker and Wurgler (2004a). The number of firms that pay cash dividends regularly continue to outnumber the ones that purchase their shares regularly. Research limitations/implications The study only uses US data. It does not cover other countries. Practical implications The measures can be used in several future research endeavors, such as examining investors’ payout-form preferences in other countries (see Booth and Zhou, 2017) and exploring their determinants, the corporate governance characteristics of firms that cater to investors’ preference vs firms that do not, etc. Social implications The study contributes to understanding investors’ preferences and corporate payout behavior which is prerequisite to efficient policy formulation. Originality/value The proxies for investors’ payout-form preference control for firm characteristics and are unrelated to investors’ time-varying risk preferences. Also, they are robust to measurement issues. Moreover, the study covers a period of 40 years.

Propeller thrust force contribution to airplane longitudinal stability

2018 ◽  
Vol 90 (9) ◽  
pp. 1474-1478
Author(s):  
Miodrag Milenković-Babić
Keyword(s):  
Stability Analysis ◽  
Thrust Force ◽  
Standard Procedure ◽  
Longitudinal Stability ◽  
Content Type ◽  
Additional Information ◽  
New Information ◽  
Practical Implications ◽  
Theoretical Results ◽  
Propeller Thrust

Purpose This paper aims to present the new information about propeller thrust force contribution to airplane longitudinal stability analysis. Design/methodology/approach The method presented in this paper is empirical, shows how propeller thrust force derivative can be obtained and gives some additional information about misinterpretation of the propeller thrust effects that are present in the current literature. Findings New information about propeller thrust force contribution to airplane longitudinal stability analysis has been presented. This information should enable more precise insight in aircraft stability analysis and better understanding of the physical process that occurs during maneuver flight. Practical implications The information presented in this paper is new and specific to the propeller aircraft configuration. The methods used here are standard procedure to evaluating propeller thrust force derivative. Originality/value The information in this paper presents theoretical results. The method for calculating thrust force contribution to the airplane longitudinal stability is given depending on the propeller type and should enable good engineering results.

Remarks about factors shaping the heliosphere

2018 ◽  
Vol 92 (3) ◽  
pp. 329-335
Author(s):  
Romana Ratkiewicz ◽  
Wojciech Konior ◽  
Jan Kotlarz
Keyword(s):  
Status Report ◽  
Physical Processes ◽  
Content Type ◽  
General Review ◽  
New Information ◽  
Conceptual Paper ◽  
First Time ◽  
Practical Implications ◽  
Theoretical Results

Purpose The purpose of the paper is to give a brief description of the new topic introduced for the first time at the EASN Conferences. Design/methodology/approach The topic concerns the heliosphere, the nearest surrounding of the Sun and thus the nearest vicinity of the Earth. The heliosphere is created due to the interaction between the solar wind and the local interstellar medium. Findings This paper does not include any new information about the heliosphere and only introduces a new topic to this journal. It is briefly shown how heliospheric structures are formed, what factors affect a shape of the heliosphere, what measurements are made by Ulysses, Voyager and IBEX space missions (important for the heliosphere modeling) and how obtained data are used to validate theoretical results. Practical implications To categorize the paper under one of these classifications, research paper, viewpoint, technical paper, conceptual paper, case study, literature review or general review, the authors chose a paper type, general review, as the closest category to this paper. However, it is not a purpose of this paper to provide an extensive review of the community efforts to investigate the physical processes in the vicinity of the heliosphere interface. This is mostly a status report. Originality/value As the new topic in this journal, the article introduces in detail only a small number of aspects connected with heliosphere models. Interplanetary and interstellar magnetic field structures are primarily described. Other factors are only mentioned.

Ownership identity and corporate donations: evidence from a natural experiment in China

2019 ◽  
Vol 10 (2) ◽  
pp. 113-142 ◽  
Author(s):  
Chun-Keung (Stan) Hoi ◽  
Jun Xiong ◽  
Hong Zou
Keyword(s):  
Natural Experiment ◽  
Great Earthquake ◽  
Private Firms ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Firm Characteristics ◽  
Content Type ◽  
Value Maximization ◽  
Financial Decision ◽  
Practical Implications

Purpose Taking advantage of the 2008 Sichuan Great Earthquake as a natural experiment, the purpose of this paper is to examine the motives and effects of corporate donations by focusing on how firm ownership identity as the first-order governance mechanism affects the motives and effects of disaster relief donations. Design/methodology/approach The authors conduct regressions and market event studies, and use matching to address the confounding effects of differences in firm characteristics. Findings The authors hypothesize that private firms that are better governed than state-owned enterprises (SOEs) are more likely to donate for value maximization. Consistent with this, the authors find that private firms are more likely to donate to the 2008 Sichuan earthquake and donate more than SOEs. The effects of secondary governance variables in the donation determinant models (e.g. board independence and managerial ownership) are more consistent with the value maximization argument. While short-term market reaction to donation announcement is not significant for private firms, it is lower when SOEs make a large donation. Consistent with the hypothesis, the authors find that over the 24–36 months following the donation, private donors realize a higher abnormal stock return. Research limitations/implications The study contributes to the debate over the merits/costs of corporate donations and helps better understand how SOEs and private firms (particularly family-owned firms) differ in their governance and financial decision-making. Practical implications Both managers from private firms and SOEs can use the findings of this study to better guide their donation and other philanthropic decisions. Originality/value This study is the first to examine both the motives and effects of corporate donations by both private and SOEs taking advantage of the 2008 Sichuan, thereby significantly extending prior related studies.

scholarly journals Estimating the price range and the effect of price bundling strategies

2019 ◽  
Vol 29 (2) ◽  
pp. 166-181 ◽  
Author(s):  
Sérgio Dominique-Ferreira ◽  
Cristina Antunes
Keyword(s):  
Market Share ◽  
Design Methodology ◽  
Price Sensitivity ◽  
Content Type ◽  
Price Range ◽  
Price Bundling ◽  
Hotel Managers ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to investigate and identify the price sensitivity of consumers of three- and five-star hotels and to determine the impact of bundling strategies on consumers’ price sensitivity. Design/methodology/approach To calculate price sensitivity, authors apply the van Westendorp’s price sensitivity meter (PSM). To understand the impact of bundling strategies, univariate and bivariate techniques are applied. Findings PSM results reveal the optimal prices and the range of acceptable prices for three- and five-star hotel. The bundling strategy results reveal that five-star customers are less sensitive to mixed-leader bundling. Regarding mixed-joint bundling, managers could improve sales through bundling strategies if they selected an attractive service (e.g. restaurants). Practical implications Findings assist hotel managers to understand the different price sensitivities, according to the hotel typology. Managers can manage prices without the risk of losing market share or revenue. The results help managers in deciding which bundling strategies they can create, as well as the services to be included to achieve highest profitability. Originality/value No research to date to the best of the authors’ knowledge has attempted to understand and compare the role of bundling strategies in three- and five-stars hotels. Moreover, no research has attempted to measure and compare customers’ price sensitivity of three- and five-stars hotels.

scholarly journals Chairmen's perceptions of female board representation: a study on Nordic listed companies

2014 ◽  
Vol 33 (6) ◽  
pp. 523-534 ◽  
Author(s):  
Tor Brunzell ◽  
Eva Liljeblom
Keyword(s):  
Gender Diversity ◽  
Listed Companies ◽  
Nordic Countries ◽  
Board Members ◽  
Firm Characteristics ◽  
Female Representation ◽  
Content Type ◽  
Gender Diverse ◽  
Board Representation ◽  
Practical Implications

Purpose – The purpose of this paper is to survey chairmen's perceptions of female board representation in five Nordic countries, focussing on whether the chairman's perception of board work is related to gender diversity, and on differences between high- and low-risk firms. Design/methodology/approach – The authors combine data from a questionnaire directed to the chairmen of the boards in Nordic listed companies with data on firm characteristics and board composition. Findings – The authors find that the chairmen (97.5 percent male) are significantly less satisfied with female board members as compared to male ones. The authors also find that firms with nomination committees have more gender diverse boards, as well as indications of a more positively perceived contribution of female representation in high-risk firms. Research limitations/implications – The study is restricted to perceptions of chairmen for listed Nordic firms. The low response rate of 20.1 percent is a severe limitation. Practical implications – The increasing practice of using nomination committees in the Nordic countries seems advantageous from gender balance perspective. Originality/value – The authors contribute to the literature on gender diversity in boards by providing results from a board intern perspective.

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